Monopoly

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  • Created by: Bee
  • Created on: 21-09-18 13:39

Monopoly

Advantages

  • Superprofit used for R&D
  • gain monopoly power due to being efficient- innovative
  • Faces global competition

Disadvantages

  • monopoly power
  • lack of choices
  • inefficient- no incentives
  • treating suppliers unfairly

Evaluation

Whether monopoly is a good thing depends on the sector/industry. For example in the medical industry large amount of R&D is needed therefore it is more beneficial for monopoly to take place while in other industry like the supermarket is may not be the best outcome. Government intervene is required to gain benefits of EOS without putting disadvantage to the market. 

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